A mortgage loan or mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination; this means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can be described as "a borrower giving consideration in the form of a collateral for a benefit". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property.
The lender will be a financial institution, such as a bank, credit union or building society, depending on the country concerned, the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, other characteristics can vary considerably; the lender's rights over the secured property take priority over the borrower's other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property; as with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time 30 years. All types of real property can be, are, secured with a mortgage and bear an interest rate, supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Property: the physical residence being financed; the exact form of ownership will vary from country to country, may restrict the types of lending that are possible.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Lender: any lender, but a bank or other financial institution. Principal: the original size of the loan, which may or may not include certain other costs. Interest: a financial charge for use of the lender's money. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan. Completion: legal completion of the mortgage deed, hence the start of the mortgage. Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption when the borrower decides to sell the property.
A closed mortgage account is said to be "redeemed". Many other specific characteristics are common to many markets, but the above are the essential features. Governments regulate many aspects of mortgage lending, either directly or indirectly, through state intervention. Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are gen
Time value of money
The time value of money is the greater benefit of receiving money now rather than an identical sum later. It is founded on time preference; the time value of money explains why interest is paid or earned: Interest, whether it is on a bank deposit or debt, compensates the depositor or lender for the time value of money. It underlies investment. Investors are willing to forgo spending their money now only if they expect a favorable return on their investment in the future, such that the increased value to be available is sufficiently high to offset the preference to have money now; the Talmud recognizes the time value of money. In Tractate Makkos page 3a the Talmud discusses a case where witnesses falsely claimed that the term of a loan was 30 days when it was 10 years; the false witnesses must pay the difference of the value of the loan "in a situation where he would be required to give the money back thirty days... and that same sum in a situation where he would be required to give the money back 10 years...
The difference is the sum. The notion was described by Martín de Azpilcueta of the School of Salamanca. Time value of money problems involve the net value of cash flows at different points in time. In a typical case, the variables might be: a balance, a periodic rate of interest, the number of periods, a series of cash flows. More the cash flows may not be periodic but may be specified individually. Any of these variables may be the independent variable in a given problem. For example, one may know that: the interest is 0.5% per period. The unknown variable may be the monthly payment. For example, £ 100 invested; that is, £100 invested for one year at 5% interest has a future value of £105 under the assumption that inflation would be zero percent. This principle allows for the valuation of a stream of income in the future, in such a way that annual incomes are discounted and added together, thus providing a lump-sum "present value" of the entire income stream. For example, the future value sum F V to be received in one year is discounted at the rate of interest r to give the present value sum P V: P V = F V Some standard calculations based on the time value of money are: Present value: The current worth of a future sum of money or stream of cash flows, given a specified rate of return.
Future cash flows are "discounted" at the discount rate. Determining the appropriate discount rate is the key to valuing future cash flows properly, whether they be earnings or obligations. Present value of an annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases and rental payments are examples; the payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period for an annuity due. Present value of a perpetuity is an constant stream of identical cash flows. Future value: The value of an asset or cash at a specified date in the future, based on the value of that asset in the present. Future value of an annuity: The future value of a stream of payments, assuming the payments are invested at a given rate of interest. There are several basic equations; the solutions may be found using a financial calculator or a spreadsheet. The formulas are programmed into several spreadsheet functions.
For any of the equations below, the formula may be rearranged to determine one of the other unknowns. In the case of the standard annuity formula, there is no closed-form algebraic solution for the interest rate; these equations are combined for particular uses. For example, bonds can be priced using these equations. A typical coupon bond is composed of two types of payments: a stream of coupon payments similar to an annuity, a lump-sum return of capital at the end of the bond's maturity—that is, a future payment; the two formulas can be combined to determine the present value of the bond. An important note is. For an annuity that makes one payment per year, i will be the annual interest rate. For an income or payment strea
Health insurance is an insurance that covers the whole or a part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons. By estimating the overall risk of health care and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement; the benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. According to the Health Insurance Association of America, health insurance is defined as "coverage that provides for the payments of benefits as a result of sickness or injury, it includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment". A health insurance policy is: A contract between an insurance provider and an individual or his/her sponsor; the contract can be renewable or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans.
The type and amount of health care costs that will be covered by the health insurance provider are specified in writing, in a member contract or "Evidence of Coverage" booklet for private insurance, or in a national health policy for public insurance. Provided by an employer-sponsored self-funded ERISA plan; the company advertises that they have one of the big insurance companies. However, in an ERISA case, that insurance company "doesn't engage in the act of insurance", they just administer it. Therefore, ERISA plans are not subject to state laws. ERISA plans are governed by federal law under the jurisdiction of the US Department of Labor; the specific benefits or coverage details are found in the Summary Plan Description. An appeal must go through the insurance company to the Employer's Plan Fiduciary. If still required, the Fiduciary's decision can be brought to the USDOL to review for ERISA compliance, file a lawsuit in federal court; the individual insured person's obligations may take several forms: Premium: The amount the policy-holder or their sponsor pays to the health plan to purchase health coverage.
Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, policy-holders might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer, it may take several doctor's visits or prescription refills before the insured person reaches the deductible and the insurance company starts to pay for care. Furthermore, most policies do not apply co-pays for doctor's visits or prescriptions against your deductible. Co-payment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-payment must be paid each time. Coinsurance: Instead of, or in addition to, paying a fixed amount up front, the co-insurance is a percentage of the total cost that insured person may pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%.
If there is an upper limit on coinsurance, the policy-holder could end up owing little, or a great deal, depending on the actual costs of the services they obtain. Exclusions: Not all services are covered. Billed items like use-and-throw, etc. are excluded from admissible claim. The insured are expected to pay the full cost of non-covered services out of their own pockets. Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount; the insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition, some insurance company schemes have annual or lifetime coverage maxima. In these cases, the health plan will stop payment when they reach the benefit maximum, the policy-holder must pay all remaining costs. Out-of-pocket maximum: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, health insurance pays all further covered costs.
Out-of-pocket maximum can be limited to a specific benefit category or can apply to all coverage provided during a specific benefit year. Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer. In-Network Provider: A health care provider on a list of providers preselected by the insurer; the insurer will offer discounted coinsurance or co-payments, or additional benefits, to a plan member to see an in-network provider. Providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers. Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assuming it matches what was authorized. Many smaller, routine services do not require authorization. Explanation of Benefits: A document that may be sent by an insurer to a patient explaining what was covered for a medical service, how payment amount and patient responsibility amount were determined.
Prescription drug plans are a form of insurance offered through some health ins
Home insurance commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory. Additionally, homeowner's insurance provides financial protection against disasters. A standard home insurance policy insures the home. Homeowner's policy is a multiple-line insurance policy, meaning that it includes both property insurance and liability coverage, with an indivisible premium, meaning that a single premium is paid for all risks; this means that it covers both damage to one's property and liability for any injuries and property damage caused by the owner or members of his/her family to other people. It may include damage caused by household pets.
The U. S. uses standardized policy forms. Coverage limits are provided as a percentage of the primary Coverage A, coverage for the main dwelling; the cost of homeowner's insurance depends on what it would cost to replace the house and which additional endorsements or riders are attached to the policy. The insurance policy is a legal contract between the named insured, it is a contract of indemnity and will put the insured back to the state he/she was in prior to the loss. Claims due to floods or war are excluded from coverage, amongst other standard exclusions. Special insurance can be purchased for these possibilities, including flood insurance. Insurance is adjusted to reflect the cost of replacement upon application of an inflation factor or a cost index. Major factors in price estimation include location and the amount of insurance, based on the estimated cost to rebuild the home. If insufficient coverage is purchased to rebuild the home, the claim's payout may be subject to a co-insurance penalty.
In this scenario, the insured will be subject to an out of pocket fee as a penalty. Insurers use vendors to estimate the costs, including CoreLogic subsidiary Marshall Swift-Boeckh, Verisk PropertyProfile, E2Value, but leave the responsibility up to the consumer. In 2013, a survey found. In some cases, estimates can be too low because of "demand surge" after a catastrophe; as a safeguard against a wrong estimate, some insurers offer "extended replacement cost" add-ons which provide extra coverage if the limit is reached. Prices may be lower if the house is situated next to a fire station or is equipped with fire sprinklers and fire alarms. Payment is made annually. Perpetual insurance which continues indefinitely can be obtained in certain areas. Home insurance offers coverage on a "named perils" and "open perils" basis. A "named perils" policy is one that provides coverage for a loss listed on the policy. An "open perils" policy is broader in the sense that it will provide coverage for all losses except those excluded on your policy.
Basic "named perils" – this is the least comprehensive of the three coverage options. It provides protection against perils most to result in a total loss. If something happens to your home that's not on the list below, you are not covered; this type of policy is most common in countries with developing insurance markets and as protection for vacant or unoccupied buildings. Basic-form covered perils: Fire Lightning Windstorm or hail Explosion Smoke Vandalism Aircraft or vehicle collision Riot or civil commotionBroad "named perils" – this form expands on the "basic form" by adding 6 more covered perils. Again, this is a "named perils" policy; the loss must be listed to receive coverage. The "broad form" is designed to cover the most common forms of property damage. Broad-form covered perils: All basic-form perils Burglary, break-in damage Falling objects Weight of ice and snow Freezing of plumbing Accidental water damage Artificially generated electricitySpecial "all risk" – special-form coverage is the most inclusive of the three options.
The difference with "special form" policies is that they provide coverage to all losses unless excluded. Unlike the prior forms, all unlisted perils are covered perils. However, if something happens to your home, the event is on the exclusions list, the policy will not provide coverage. Special-form excluded perils: Ordinance of law Earthquake Flood Power failure Neglect War Nuclear hazard Intentional acts In the United States, most home buyers borrow money in the form of a mortgage loan, the mortgage lender requires that the buyer purchases homeowner's insurance as a condition of the loan, in order to protect the bank if the home is destroyed. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortgagee will waive the need for the mortgagor to carry homeowner's insurance if the value of the land exceeds the amount of the mortgage balance. In such a case the total destruction of any buildings would not affect the ability of the lender to be able to fo
Term Life is a 2016 American action drama film based on the graphic novel of the same name. It is directed by Peter Billingsley from a screenplay by A. J. Lieberman; the film stars Vince Vaughn, who produces the film, Hailee Steinfeld, Jonathan Banks, Mike Epps, Jordi Molla, Shea Whigham, William Levy, Taraji P. Henson, Annabeth Gish, Terrence Howard; the film was released on April 29, 2016, in a limited release and through video on demand by Focus World. The film received negative reviews. Nick plans and sells heists to the highest bidder but is forced to take his daughter Cate, who he hasn't had a relationship with her whole life, on the lam when a job goes bad. Cate has had to fend for herself. Cate gives her father a hard time because of the hideout that has no food, him trying to assert himself in her life. Nick is now trying to connect the hunt down who double-crossed him. With the aid of an elderly man Harper, he gets the inside scoop and comes to the conclusion that it was an undercover officer Captain Keenan, out to kill Nick.
In the meantime and Cate bond and Nick explains to Cate when she asks how he does his heists: "learn how to get out before you get in, evaluate the security of a location, whether they have CCTV or the owner is the one that responds, always make sure to have a workable exit plan. Cate was irritated that her father knows so much about her and has taken pictures of her throughout her life and has kept it in a box but she enjoys the birthday gift he gets for her, taking her to the carnival and teaching her how to shoot. Keenan now needs to clean up his corrupt team, ratting him out to Internal Affairs and kills Detective Matty and a hooker and fingers Nick as the guy who did the killing. Hunted by mob bosses, contract killers and dirty cops, he takes out a life insurance policy on himself to leave something for her. Nick educates Cate on how to survive. In the meantime, Nick gets arrested by the local sheriff responding to an APB and the Spanish mob springs him out of jail to kill him but Cate comes to the rescue.
Cate and Nick argue and Cate abandons Nick on the side of the road. Keenan abducts Cate and uses her as bait to try to get Nick and in the shoot-out and Cate escape. Though Nick was unwilling to listen to Cate's plan, Cate executed a plan that got rid of Keenan, evidence pointed to him for multiple murders and exonerated Nick, Nick and Cate choose to live together and bond as father and daughter. Production came to an abrupt halt when Universal decided to cancel the film in October 2013, just a month after casting Hailee Steinfeld; the film was revived a month by QED International and PalmStar Entertainment, who co-financed and produced the film with Universal on board to handle U. S. distribution. Filming began on March 1, 2014, with a casting call issued in Grantville and concluded on April 22, 2014. Universal Pictures was set to distribute the film. However, Focus World ended up getting distribution rights to the film; the film was scheduled to be released on March 1, 2016, through video on demand, prior to opening in a limited release on April 8, 2016.
However, it was delayed to April 29, 2016, with the film opening in a limited release and through video on demand. The film received a score of 0% on Rotten Tomatoes based on 7 reviews. Term Life on IMDb Term Life at Rotten Tomatoes
Property insurance provides protection against most risks to property, such as fire and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. Property is insured in two main ways -- named perils. Open perils cover all the causes of loss not excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, nuclear incidents, acts of terrorism, war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided; the more common named perils include such damage-causing events as fire, lightning and theft. Property insurance can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses; the devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for'the Insurance Office' in his new plan for London in 1667".
A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses", at the back of the Royal Exchange to insure brick and frame homes. 5,000 homes were insured by Barbon's Insurance Office. In the wake of this first successful venture, many similar companies were founded in the following decades; each company employed its own fire department to prevent and minimise the damage from conflagrations on properties insured by them. They began to issue'Fire insurance marks' to their customers. One such notable company was the Hand in Hand Fire & Life Insurance Society, founded in 1696 at Tom's Coffee House in St Martin's Lane in London; the first property insurance company still extant was founded in 1710 as the'Sun Fire Office' now, through many mergers and acquisitions, the RSA Insurance Group. In Colonial America, Benjamin Franklin helped to popularize and make standard the practice of insurance Property insurance to spread the risk of loss from fire, in the form of perpetual insurance.
In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company refused to insure certain buildings, such as wooden houses, where the risk of fire was too great. There are three types of insurance coverage. Replacement cost coverage pays the cost of repairing or replacing your property with like kind & quality regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, not based on actual cash value. Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased; this will not exceed 25% of the limit. When you obtain an insurance policy, the limit is the maximum amount of benefit the insurance company will pay for a given situation or occurrence. Limits include the ages below or above what an insurance company will not issue a new policy or continue a policy; this amount will need to fluctuate.
In case of a fire, household content replacement is tabulated as a percentage of the value of the home. In case of high-value items, the insurance company may ask to cover these items separate from the other household contents. One last coverage option is to have alternative living arrangements included in a policy. If property damage caused by a covered loss prevents you from living in your home, policies can pay the expenses of alternate living arrangements for a specified period of time to compensate for the “loss of use” of your home until you can return; the additional living expenses limit can vary, but is set at up to 20% of the dwelling coverage limit. You need to talk with your insurance company for advice about appropriate coverage and determine what type of limit may be appropriate for you. Following the September 11 attacks, a jury deliberated insurance payouts for the destruction of the World Trade Center. Leaseholder Larry A. Silverstein sought more than $7 billion in insurance money.
Its insurers—including Chubb Corp. and Swiss Reinsurance Co.—claimed the "coordinated" attack counted as a single event. In December 2004 the federal jury arrived at a compromise decision. In May 2007 New York Governor Eliot Spitzer announced more than $4.5 billion would be made available to rebuild the 16-acre WTC complex as part of a major insurance claims settlement. In the wake of Hurricane Katrina, several thousand homeowners filed lawsuits against their insurance companies accusing them of bad faith and failing to properly and promptly adjust their claims. On 24 June 2009, Florida Governor Charlie Crist vetoed the Consumer Choice Act; the bill would have trumped state regulation, allowed Florida's biggest insurance companies to establish their own rates. Remarking upon State Farm's pullout from Florida, Ted Corless, a property insurance attorney who has represented large insurance carriers like Nationwide, noted "that homeowners are going to have to look out for themselves". Five days after Crist vetoed the Consumer Choice Act, Corless defended property insurance deregulation by pointing out that "if the blue-chip insurance companies wanted to price themselves out of the market" they would go
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can trigger payment; the policy holder pays a premium, either or as one lump sum. Other expenses, such as funeral expenses, can be included in the benefits. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are written into the contract to limit the liability of the insurer. Modern life insurance bears some similarity to the asset management industry and life insurers have diversified their products into retirement products such as annuities. Life-based contracts tend to fall into two major categories: Protection policies – designed to provide a benefit a lump sum payment, in the event of a specified occurrence.
A common form—more common in years past—of a protection policy design is term insurance. Investment policies – the main objective of these policies is to facilitate the growth of capital by regular or single premiums. Common forms are whole life, universal life, variable life policies. An early form of life insurance dates to Ancient Rome; the first company to offer life insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen. Each member made an annual payment per share on one to three shares with consideration to age of the members being twelve to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among the wives and children of deceased members, in proportion to the number of shares the heirs owned; the Amicable Society started with 2000 members. The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the necessary mathematical and statistical tools were in place for the development of modern life insurance.
James Dodson, a mathematician and actuary, tried to establish a new company aimed at offsetting the risks of long term life assurance policies, after being refused admission to the Amicable Life Assurance Society because of his advanced age. He was unsuccessful in his attempts at procuring a charter from the government, his disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based". Mores gave the name actuary to the chief official—the earliest known reference to the position as a business concern; the first modern actuary was William Morgan, who served from 1775 to 1830. In 1776 the Society carried out the first actuarial valuation of liabilities and subsequently distributed the first reversionary bonus and interim bonus among its members.
It used regular valuations to balance competing interests. The Society sought to treat its members equitably and the Directors tried to ensure that policyholders received a fair return on their investments. Premiums were regulated according to age, anybody could be admitted regardless of their state of health and other circumstances; the sale of life insurance in the U. S. began in the 1760s. The Presbyterian Synods in Philadelphia and New York City created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. In the 1870s, military officers banded together to found both the Army and the Navy Mutual Aid Association, inspired by the plight of widows and orphans left stranded in the West after the Battle of the Little Big Horn, of the families of U. S. sailors. The person responsible for making payments for a policy is the policy owner, while the insured is the person whose death will trigger payment of the death benefit.
The owner and insured may not be the same person. For example, if Joe buys a policy on his own life, he is both the insured, but if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantor and he will be the person to pay for the policy; the insured is a participant in the contract, but not a party to it. The beneficiary receives policy proceeds upon the insured person's death; the owner designates the beneficiary. The owner can change the beneficiary. If a policy has an irrevocable beneficiary, any beneficiary changes, policy assignments, or cash value borrowing would require the agreement of the original beneficiary. In cases where the policy owner is not the insured, insurance companies have sought to limit policy purchases to those with an insurable interest in the CQV. For life insurance policies, close family members and business partners will be found to have an insurable interest; the insurable interest requirement demon